Adani Group stocks continue to bleed for the fifth trading session in a row. All seven stocks in the group finished Wednesday's trade in the red, with Adani Enterprise being the top loser with a loss of 28.20%, followed by Adani Ports & SEZ, dropping 19.18%.
The stocks started plummeting after Credit Suisse Group AG stopped accepting bonds of Gautam Adani’s group of companies as collateral for margin loans to its private banking clients, a sign that scrutiny of the Indian tycoon’s finances is growing after allegations of fraud by short-seller Hindenburg Research, Bloomberg reported.
The Swiss lender’s private banking arm has assigned a zero-lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy, and Adani Electricity Mumbai Ltd., the report said.
Other banks continue to lend against Adani's debt. At least two European private banks kept the level unchanged as of now, with one of those offering lending of between 75% and 80% for Adani Ports' dollar bonds. the report said, citing sources.
The Seven listed Adani stocks started their downward spiral on January 25 a day after the Hindenburg came out with their research report claiming Indian conglomerate Adani Group was involved in accounting fraud and raised fresh concerns over the group's debt and shareholding pattern of four listed companies in the group.
| Scrip Name | Last Trade Price | Change (%) | Drop in Last 5 trading days (%) | M-Cap as of 31-01-23 ( ₹in Cr) | M-Cap as of 01-02-23 ( ₹in Cr) | Difference ( ₹in Cr) | loss in M-Cap Since January 25 ( ₹in Cr) |
| Adani Power | 212.65 | -4.98 | -22.81% | 86,163 | 81,870.25 | -4,292.75 | -23,870 |
| Adani enterprise | 2,135 | -28.20 | -37% | 3,24,155 | 2,32,753.15 | -91,401.95 | -1,42,413.9 |
| Adani Total Gas | 1,897 | -10 | -51.24% | 2,19,984 | 2,06,816.60 | -13,167.20 | -2,07,574.1 |
| Adani Transmission | 1,724 | -2.85 | -37.61% | 1,94,963 | 1,89,412.65 | -5,549.95 | -1,14,169.3 |
| Adani Green Energy | 1,155 | -5.60 | -39.78% | 1,92,488 | 1,80,234.60 | -12,253.80 | -1,20,096 |
| Adani Ports & SEZ | 495 | -19.18 | -35% | 1,64,497 | 1,32,947.78 | -31,548.75 | -71,024.24 |
| Adani Wilmar | 443 | -5 | -22.64% | 60,172 | 57,166.35 | -3,005.70 | -16,815.15 |
| Total | - | - | - | 12,42,421 | 10,81,201 | -1,61,220 | -6,95,964.2 |
In just the last five trading sessions, shares of Adani Total Gas, Adani Green Energy, and Adani Enterprises have lost about 51.24%, 39.78%, and 37% of their value, respectively.
On January 25, the total market cap of the seven listed Adani stocks lost Rs. 88,000 crore. The following trading session on Friday saw the stocks losing about Rs. 3 lakh crore in market value, and the sell-off in stocks extended to Monday's trade and shaved off another Rs. 1.37 lakh crore in market cap.
In addition, the group lost another Rs. 1,61,220 crore in market cap on Wednesday. Adani Total Gas was the biggest loser in the group with a market cap loss of Rs. 2,07,574 crore over the last five days.
Meanwhile, the follow-on public offering (FPO) of Adani Enterprises Ltd was oversubscribed 1.12 times on its final day, driven by the strong response from non-institutional investors (NIIs) and qualified institutional buyers (QIBs).
However, retail investors stayed away from the FPO subscription as the stock price sharply fell below the FPO. On Tuesday, the stock closed at ₹2,973, much below the FPO price band of ₹3,112 and ₹3,276.
As stocks plummet, Gautam Adani slips to 15th on Forbes rich list with an estimated net worth of $75.1 billion.
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